WCO Presentation APEC June 2013

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The
Harmonized
Commodity
Description
and
Coding
System (HS)

Multipurpose Goods Nomenclature developed by WCO.

Basis for Customs Tariffs and Trade Statistics of more
than 200 countries and economies.

More than 98 % of World trade in terms of the HS.

A universal economic language and code for transportable
goods.

Implemented internationally in 1988 by the HS
Convention. (147 Contracting Parties as of May 2013).

Maintained by WCO through the HS Committee.

Nomenclature Sub-Directorate acts as Secretariat.
APEC Workshop on the Advancement of Trade in IT Products
June 2013

To facilitate international trade

Collection, comparison and analysis of trade
statistics

Standardization of trade documentation and
transmission of data
APEC Workshop on the Advancement of Trade in IT Products
June 2013
Used by :
Customs and statisticians
Governments
International organizations
Private sector
Many purposes, such as :
trade policies, monitoring of controlled goods, rules of origin, freight tariffs,
transport statistics, price monitoring, quota controls, economic research and
analysis...
A universal economic language and code for goods, and an indispensable
tool for international trade.
APEC Workshop on the Advancement of Trade in IT Products
June 2013
Historical background
(1) The GATT raised various questions
about Customs processes but there was
no institution responsible for examining
Customs issues
(2) Thirteen European countries established a
Study Group to examine the Customs issues
identified by the GATT and this led to the
decision to create an international Customs body
1947
1948
1950
(4) The Convention
establishing a Customs Cooperation Council (CCC) was
signed in Brussels
1952
(5) The CCC
Convention entered
into force on
4 November 1952
APEC Workshop on the Advancement of Trade in IT Products
June 2013
1953
(6) The inaugural
session
of the CCC
Council
was held on
26 January 1953
with 17 founding
Members
1994
In 1994, the CCC
adopts the name
WCO
The HS Convention itself has foreseen the
need
for a substantial
international maintenance mechanism for the
HS
in order to
ensure uniformity
of interpretation and application and to
keep the system current
with modern trading practices, product
development and the needs of users
APEC Workshop on the Advancement of Trade in IT Products
June 2013
Every 4 to 6 years
1 January 2012
1 January 2017
1 January 2022
APEC Workshop on the Advancement of Trade in IT Products
June 2013
Harmonized System
Implemented in 1988
HS Codes : 5019
Amended in 1992
Mainly editorial
HS Codes : 5018
Amended in 1996
393 sets of amendments
HS Codes : 5113
Amended in 2002
374 sets of amendments
HS Codes : 5224
Amended in 2007
354 sets of amendments
HS Codes : 5052
Amended in 2012
225 sets of amendments
HS Codes : 5205
APEC Workshop on the Advancement of Trade in IT Products
June 2013
•
354 sets of amendments to
HS 2007
•
About 70 related to IT products in
Chapters 84, 85 and 90
•
Changes to 200 of the 773
subheadings in these three
Chapters
•
110 related to products covered by
the ITA
APEC Workshop on the Advancement of Trade in IT Products
June 2013
ITEMS EXAMINED
Legal Notes
84.43 Printing machinery
84.86 Semiconductor mfg. equipment
85.17 Telecommunications
85.19 Audio players/recorders
85.23 Media for recorded data
85.28 Television monitors/receivers
90.10 Photocopiers
APEC Workshop on the Advancement of Trade in IT Products
June 2013
Far fewer amendments to IT nomenclature for HS 2012
Amendments focused on :
•Technological progress
•Changes in trade patterns
•Clarification of texts
•Trade practice
Section XVI of the HS had a total of 30 changes including 9 to
Chapter 84 and 20 to Chapter 85
Chapter 90 had three sets of amendments
APEC Workshop on the Advancement of Trade in IT Products
June 2013
APEC Workshop on the Advancement of Trade in IT Products
June 2013
• REVIEW SUB-COMMITTEE (November 2014)
• HS COMMITTEE (March 2014)
• COUNCIL RECOMMENDATION (June 2014)
• FINAL LIST OF AMENDMENTS AFTER DELETING
OBJECTIONS (January 2015)
• IMPLEMENTATION - 1 January 2017
APEC Workshop on the Advancement of Trade in IT Products
June 2013
 DISTRIBUTION OF FINAL TEXT OF AMENDMENTS
(January 2015)
 CORRELATION TABLES (approximately January 2016)
 EXPLANATORY NOTES (approximately September 2016)
 WTO NEGOTIATIONS (Article XXVIII Procedure)
 NATIONAL LEGISLATION AND NOTIFICATION
 TRAINING AND TECHNICAL ASSISTANCE
APEC Workshop on the Advancement of Trade in IT Products
June 2013
Shortening Review Cycles from 5 years to 3
Private
Sector
Public
Sector
Keeping the
HS current
with
respect of
changes in
trade and
technology
Long term
stability to
provide
meaningful
import and
export
trade data
APEC Workshop on the Advancement of Trade in IT Products
June 2013
APEC Workshop on the Advancement of Trade in IT Products
June 2013